Assignment Task:
WHIRLPOOL CORPORATION – Evolution of a Supply Chain
Summary
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Get Help Now!Whirlpool Corporation is the world’s leading manufacturer and marketer of major home appliances, with annual sales over $19 billion, more than 80,000 employees and more than 60 manufacturing and technology research centres globally. Consumers around the world enjoy Whirlpool’s innovative products marketed under Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Bauknecht and other major brand names. With this varied inventory, plus a large direct sales force in more than 170 countries and an unpredictable sales cycle, effective supply chain management is critical for continued growth. Whirlpool has not always considered logistics a competitive advantage. However, since naming Penske its lead logistics supplier, Whirlpool experienced cost savings, increased customer satisfaction and found a partner to help integrate the recent acquisition of Maytag. Challenges
• To effectively leverage its supply chain to maximise cost savings, while also positively influencing the overall Whirlpool customer experience.
• To swiftly and efficiently integrate Maytag operations. Solutions/Results
• Through the Penske/Whirlpool LLP relationship, Penske assumed responsibility for execution and management of 3PLs and provided an enhanced ability to view each supplier’s key performance indicators integrated with financials.
• Penske built a new routing tool specifically for Whirlpool that offered overall cost optimisation and mode selection.
• Penske helped to integrate Maytag operations through consolidating LDC networks, optimising routing of RDC shipments, determining optimal fleet size and operating network, combining collocated Maytag and Whirlpool RDS locations and integrating the Hi/Lo network to improve product availability and fill rates. Taking a Customer-Centric Approach Supply chain management was not always a competitive advantage for Whirlpool. Penske initially partnered with Whirlpool as its single logistics provider for the Quality express network. Penske was responsible for the logistics of the entire network, including managing the relationship of the 19; 20 2020 © The Independent Institute of Education (Pty) Ltd 2020 Page 5 of 12 two regions it subcontracted to Kenco. This Penske-Whirlpool partnership replaced Whirlpool’s previous logistics solution, comprised of two incumbent third-party logistics providers. The partnership accomplished Whirlpool’s early logistics objectives, most notably, to establish effective processes and procedures, allow for more visibility of the company’s distribution network and reduce supply chain costs. Recently, Whirlpool’s management took a more customer-centric approach to analysing its supply chain and began benchmarking its supply chain against other companies to identify “best in class” practices. This exercise prompted Whirlpool to question whether having a single logistics provider was the best structure to exceed customer expectations and maximise cost savings. At the same time, Whirlpool was gearing up for the monumental acquisition of Maytag.
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